On October 18, 2013, the New York Society of Security Analysts (NYSSA) will host its African Capital Markets Conference. The Conference will provide an opportunity for investors, analysts and interested persons to understand the depth of the African capital markets.
Inexperienced investors and students of the African markets often have certain concerns regarding investing in Africa. For instance, what are the technicalities involved in successfully investing and trading in Africa or with African companies? What differences, possibilities or difficulties are presented when an investor ventures into the African market, as opposed to other developing markets? And finally, what are the risks and how may an investor circumvent, or at the least, minimize these risks?
The NYSSA’s African Capital Markets Conference will answer these questions and more.
On July 8th, 2013, the international news agency, Reuters, revealed that over the last ten years (2003–2012) the total value of mergers and acquisitions deals in Africa executed by foreign investors was in the amount of $ 183 billion. It is noteworthy that this number is a threefold increase from the preceding decade (1993–2002). Additionally, the African Development Bank explained that African economic growth should equal 4.8 percent this year and further increase to approximately 5.3 percent in the year 2014. These revelations are significantly encouraging for foreign investors who desire to participate in the African capital markets. It reveals a market abound with economic fertility, as well as a market that encourages foreign investment. As a result, an investor is placed in a position were returns on African investments are promisingly rewarding and potentially more rewarding than returns gained in the low yield environment of developed economies.
The African Capital Markets Conference is a significant opportunity for those who seek to understand the African market to listen to expert panels of seasoned investment professionals offer their “insider’s view.” One of these panels will provide a discussion on the African debt capital markets. Ms. Claire Husson-Citanna, a Portfolio Manager & Emerging Market Debt Research Analyst at Franklin Templeton, will sit on this panel and provide her experience to conference attendees. Speaking about her expectation for the conference, Ms. Husson-Citanna explains that “this is now the time for the relatively decoupled continent to provide alpha returns, even more so in the context of global interest rate and foreign exchange volatility.” Ms. Husson-Citanna and her co-panelists will provide insight into the technicalities of raising debt for acquisitions within the continent, advice on the manner in which investors may refinance or restructure debt and discuss how investors may utilize debt as an investment instead of equity, as financing a venture with debt is usually cheaper than financing a venture through equity.
In addition to discussing the African debt capital market, the expert panelists on the three panels: African debt capital markets, Public Equity and Private Equity, will also advise on the profitability of investing in the African market and how such investments can develop local African communities. Thomas Brigandi, the coordinator of the conference and NYSSA's Global Investing Committee Vice Chairman, explains that while the “conference is an opportunity to inform institutional investors about Africa’s opportunities with regards to generating potentially high risk-adjusted returns,” the conference will also educate investors about “the importance of a developed African Capital Market in terms of decreasing poverty and promoting economic development across Africa.” Mr. Brigandi considers the conference as a great opportunity for both foreign investors and the local African community. On one hand, the conference informs investors on techniques necessary to gaining promising returns on African investments. Conversely, the conference educates investors against exploitation. In essence, rather than have investors whose sole purpose is to gain profits from the African market without any plan to contribute to the development of Africa, the conference participants will be educated about the importance of maximizing their investment in a manner that benefits the local community and in turn, develops the African economy.
As part of its strategy to educate investors about the development of local African communities, NYSSA has partnered with the American Foundation for African Children’s Education (AFACE): a multinational non-governmental organization (NGO) which has repaired eight (8) primary schools and helped more than nine thousand (9,000) children in West Africa. Institutional investors and other conference attendees will have the opportunity to interact with representatives from AFACE and learn about the not-for-profit organization’s work within Africa. Attendees will also learn how they can participate in the development of Africa, through AFACE or through other not-for-profit organizations.
Daniel Fridson, the Vice President and Director of Global Affairs at AFACE, explains that AFACE understands “that coordination of public administration, private enterprise and non-profit work is very important in developing nations.” Mr. Fridson explains that “to ensure progress made on any of these fronts is sustained and maximized, it is imperative that leaders from all three fields work together. For instance, if AFACE repairs a school that affords opportunities for an increased number of children, it must be ensured that their parents have the economic resources to allow the children to devote more efforts towards their studies and opportunities for educated young people exist domestically.” Consequently, AFACE has continued to work closely with public administrators and private enterprise to sustain a successful project of rebuilding local communities in Africa.
The NYSSA’s African Capital Markets Conference will be held from 8:00 am until 1:00 pm on Friday, October 18, 2013, at the NYSSA Conference Center: 1540 Broadway, Suite 1010, (entrance on 45th Street), New York, NY 10036. The registration deadline is Wednesday, October 16, 2013. In order to purchase your ticket, you may click on: http://www.nyssa.org/programs/conferencesseminars/ctl/viewdetail/mid/754/itemid/786/d/20131018.aspx
